The rise of RMB in late 2010 is continuing.

Yesterday, the exchange rate of RMB against the US dollar reached a new high, at 6.6229.

In the last two weeks of 2010, the international exchange market was trading lightly due to holiday factors, and the main exchange rate was in turmoil. However, the RMB began a significant appreciation trend.

Like interest rate increases, the appreciation is also considered by analysts to be one of the ways of regulators to fight inflation. The accelerated appreciation of the renminbi means that monetary policy has entered a comprehensive contraction.

As the central parity of RMB has risen for several consecutive trading days, plus the demand for foreign exchange settlement at the end of the year, the performance of the renminbi in the domestic spot market is also very strong.

Yesterday, the spot closing price and intraday price of the RMB against the US dollar hit a new high since 2005, and the two new record prices were 6.6008 and 6.6000 yuan respectively.

Traders pointed out that yesterday's spot trading, the sale of the exchange is very active, and the dollar sales are even more turbulent.

A foreign exchange trader at a state-owned bank told the first financial daily that at the end of the year, there would be more pactions, but it had little to do with the trend of appreciation. From yesterday's trading direction, the volume of foreign exchange settlement and sales was very large.

Meanwhile, traders from another commercial bank told reporters that the increase in the RMB intraday price was relatively large, which should be related to a large number of US dollar sell-off yesterday, and the willingness of traders to undertake the US dollar is relatively small.

Although spot trading is very active, it has little effect on the forward market settlement.

"In the long run, everyone is watching."

The state-owned bank trader said.

Market participants believe that the accelerated pace of appreciation at the end of the year may make the RMB dollar rise more reasonable this year.

By the second countdown of 2010, the appreciation of the renminbi has achieved over 3%, which is basically consistent with the annual increase expected by most analysts before, but the real target of the whole year is not yet known.

"The key is to see tomorrow's middle price before we know whether the target of appreciation is 6.62 or 6.60."

The traders of the commercial banks pointed out to reporters.

Since the reopening of the RMB exchange rate, the formulation of the middle price will largely refer to the closing price of the previous trading day, but the trader also said that although the international dollar was weak recently, the RMB is expected to continue to rise, but recently the central parity seems to have stabilized in 6.62 places.

In June 2010, China changed the mechanism of pegging the US dollar during the financial crisis, and restarted the exchange rate reform and RMB appreciation process which began in 2005.

According to the policy of the central bank, the renminbi exchange rate is implemented with reference to a basket of currencies and a managed floating exchange rate mechanism.

After the reopening of the RMB exchange rate, the RMB price is different from the unilateral appreciation of the US dollar in the past. The middle price reflects more two-way volatility characteristics.

At present, most analysts expect that the increase of RMB in 2011 will be larger than that in 2010, and the annual increase will be over 5%. This magnitude may bring negative impact on China's low value-added and labor-intensive enterprises, which will bring unemployment pressure to a certain extent and trigger the market's anxiety about China's export prospects. However, with the global economic recovery, China's overall export level is expected to maintain a good growth next year.